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Question 64

Which of the following is the most likely cause of a demand deficient unemployment (or cyclical unemployment)?

Options:

A.

A fall in domestic interest rates

B.

Significantly lower labor costs available in a developing country

C.

Improvement in the terms of trade

D.

Excess aggregate demand in the economy of a trading partner

Question 65

All of the following are examples of structural unemployment except which one?

Options:

A.

Redundancies in shipbuilding caused by competition from abroad.

B.

Falling employment in manufacturing industry resulting from a decline in consumer incomes.

C.

Unemployment in coal mining caused by the advent of new energy sources.

D.

Above average unemployment rates among low skilled workers.

Question 66

If in a boom a government adopted a contractionary (restrictive) monetary policy, a typical business would expect to experience:

i. Higher interest payments on its bank borrowing.

ii. Falling credit based sales.

iii. Higher income and corporate taxes.

iv. Lower sales to government agencies.

v. Difficulties in securing working capital

vi. Higher prices for imported components.

Options:

A.

(i), (ii) and (vi) only

B.

(i), (ii) and (v) only

C.

(ii), (iii) and (iv) only

D.

(i), (iii) and (iv) only

Question 67

A surplus on the current account of the balance of payments can be financed by

Options:

A.

An inflow of capital on the capital account.

B.

Lending abroad on the capital account.

C.

A fall in the foreign exchange reserves

D.

A surplus on the government budget.

Page: 16 / 17
Exam Code: BA1
Exam Name: Fundamentals of Business Economics
Last Update: May 16, 2024
Questions: 468
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